Artificial intelligence (AI) is attracting investors. However, as a recent study shows, many so-called AI startups aren't using the technology at all.
AI startups, but without artificial intelligence—that's how one could briefly summarize the results of a recent study by London-based investor MMC Ventures. The study, for which MMC says it examined 2,830 AI startups in 13 EU countries, found that for 40 percent of companies, artificial intelligence technology is not an essential component of their product or service.
AI attracts investors
While these startups don't always claim ownership of the technology themselves, they are classified as artificial intelligence startups by analytics websites such as Pitchbook and Crunchbase. However, this classification can be very lucrative in terms of investor capital. For example, the Software & Analytics sector, which includes AI, blockchain, AR, VR, cloud computing, cyber, and analytics, recorded a massive increase in investment in Germany alone last year.
About the study
